Huntingdon REIT announces ownership of $12.5 million police station in Winnipeg

    WINNIPEG, Sept. 4 /CNW/ - Huntingdon Real Estate Investment Trust
("HREIT") (TSX: HNT.UN) announced today that it has been selected by the City
of Winnipeg as the successful public-private partnership proponent to own the
new 33,000 square foot East Side Police Station located at 1750 Dugald Road in
Winnipeg, Manitoba. The project will be constructed by Bird Construction
Company (TSX: BDT.UN) under a fixed price construction contract for occupancy
on September 1, 2008. The total cost of the completed project cost will be
$12.5 Million and the City of Winnipeg will lease the property for 30 years.
The increasing net rental rates over the term of the lease averages $30 net
rent per square foot and will provide an average 7.25% rate of return on
    The acquisition will be financed with a high ratio, 30-year term, fixed
rate first mortgage, with an estimated interest rate of 5.5% and 30-year
    The City of Winnipeg has options to acquire the property in 2018, 2028 or
2038 at a purchase price of $11 Million, $8 Million and $1.00, respectively.

    HREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbol HNT.UN. The objective of HREIT is to provide
Unitholders with stable and growing cash distributions from investments in a
geographically diversified Canadian portfolio of quality commercial and
industrial real estate properties. There are currently 71,951,436 trust units
outstanding. For further information on HREIT, please visit our website at

    This press release contains certain statements that could be considered
as forward-looking information. The forward-looking information is subject to
certain risks and uncertainties, which could result in actual results
differing materially from the forward-looking statements.

    The TSX has not reviewed or approved the contents of this press release
    and does not accept responsibility for the adequacy or accuracy of this
    press release.

For further information:

For further information: Arni Thorsteinson, President & Chief Executive
Officer; Gino Romagnoli, Investor Relations, (204) 475-9090, Fax: (204)

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